A Study On The Effects Of The Credit Asset Securitization On Commercial Banks Liquidity Risk In China

In recent years,the business environment of China's commercial banks have become increasingly complex due to factors such as acceleration of financial disintermediation,slower growth of China's economy and financial deleveraging.Their asset-liability structure and asset quality have deteriorated to some extent,and liquidity pressure is increasing.The resumption of the credit asset securitization business in China in 2012 provides a potential solution to reducing its liquidity risk.In order to explore the effect of credit asset securitization on bank liquidity risk and its mechanism,this paper conducted a theoretical and empirical study on the effect of credit asset securitization on commercial bank liquidity risk.Firstly,through literature review,this paper sorted out the literature related to commercial bank liquidity,credit asset securitization and the relationship between them;Secondly,this paper analyzed the liquidity risk and the status quo of credit asset securitization of commercial banks in China.The analysis results show that the liquidity risk of commercial banks in China has been increasing in recent years.Although the credit asset securitization business in China has developed rapidly in recent years,there is still a large range for growth;Thirdly,this paper summarized the basic theory and operational process of credit asset securitization,and analyzed the mechanism of effect of credit asset securitization on the liquidity risk of commercial banks based on this.Credit asset securitization affects the liquidity risk of commercial banks mainly via it's effect on the structure of assets and liabilities and the quality of assets.Fourthly,this paper measured the liquidity risk of commercial banks with indicators selected from aspects of asset-liability structure and asset quality,and empirically analyzed the relationship between credit asset securitization and bank liquidity risk based on the relevant data.The empirical analysis shows that the commercial banks' credit asset securitization business can effectively reduce their liquidity risk.Finally,this paper summarized the theoretical and empirical study results,and based on these results,this paper put forward some constructive opinions on the development of credit asset securitization business in China in terms of supervision and legislation.